Sheridan – September 11, 2026 -- The global pharmaceutical contract development and manufacturing organization (CDMO) market is forecast to expand from $191 billion in 2026 to $270.3 billion by 2031, a compound annual growth rate of 7.2%, according to a new study by Wissen Research.
Outsourcing and biologics demand drive the growth trajectory
Pharmaceutical and biotechnology firms are increasingly outsourcing drug development and manufacturing to cut capital costs and refocus internal resources on R&D and commercialization. Demand for biologics, biosimilars, cell and gene therapies, antibody-drug conjugates, and mRNA-based medicines is pushing CDMOs to build specialized manufacturing platforms rather than remain peripheral service providers.
API manufacturing and commercial-scale production lead segment revenue
The API segment held the largest revenue share by product type in 2025, supported by rising demand for high-potency APIs, peptide APIs, and complex small molecules. By operation type, the commercial segment led the market in 2025 as drug makers shifted large-scale manufacturing to third parties to reduce capital exposure and speed product launches.
North America retains the largest share; China emerges as fastest-growth market
North America remains the largest regional market, supported by a dense concentration of pharmaceutical companies and mature regulatory frameworks. Asia-Pacific is the fastest-growing region, with China singled out for significant expansion driven by government incentives, competitive production costs, and improving regulatory quality standards. Chinese CDMOs including WuXi AppTec, Asymchem, Porton Pharma Solutions, and Pharmaron continue expanding R&D and manufacturing capacity to serve both domestic and international clients.
Capacity constraints in sterile injectables and cell/gene therapy persist
Limited availability of qualified facilities for sterile injectables, high-potency drug manufacturing, and cell and gene therapy production is lengthening production timelines and raising costs for pharmaceutical clients. Supply chain complexity, high capital requirements, and dependence on skilled technical talent add further operational pressure, while maintaining regulatory compliance across multiple regions — under agencies such as the U.S. FDA and EMA — remains an ongoing challenge for globally operating CDMOs.
Major players concentrate investment in biologics and advanced therapy capacity
Lonza, Thermo Fisher Scientific, Catalent, Samsung Biologics, and WuXi AppTec continue expanding manufacturing capacity in single-use bioprocessing, viral vector manufacturing, fill-finish operations, and high-containment facilities. In Asia-Pacific, WuXi Biologics, Samsung Biologics, and Syngene International are accelerating facility build-outs to capture rising regional and international outsourcing demand.